How to Get a Property Tax Incentive on New or Rehabbed Industrial Properties
By Gary H. Smith
Chicago and Cook County Property Tax Appeal Attorney
“Class 6b” sounds like it could be an obscure bureaucratic rule. In fact Class 6b is a tax incentive opportunity designed to encourage economic development in Cook County.
The incentive applies when the real estate is used primarily for “industrial purpose,” and there is either new construction, substantial rehabilitation or substantial reoccupancy of abandoned property.
The conditions and rules are spelled out in detail on the Cook County Assessor’s website (http://cookcountyassessor.com/assets/forms/cls6bb.pdf).
The office of Joseph Berrios, county assessor, says the goal of Class 6b is “to attract new industry, stimulate expansion and retention of existing industry and increase employment opportunities.”
Industrial real estate in Cook County normally is assessed at 25 percent of market value. If you are able to establish that your property should be classified as Class 6b it will be assessed at 10 percent of market value for the first 10 years, 15 percent in the 11th year and 20 percent in the 12th year. “This constitutes a substantial reduction in the level of assessment and results in significant tax savings,” the assessor’s office says.
To qualify for 6b, my office will work with you to convince the municipality where your real estate is located to adopt the ordinance that is required. The ordinance must expressly consent to the filing of a Class 6b Application and find Class 6b necessary for development to occur on the property.
Timing is critical: Your application must be filed before any work commences on the property.
The Law Offices Gary H. Smith, P.C. has the knowledge and expertise to guide you through what could be a complicated, but money-saving process. After reviewing the assessor’s 6b bulletin please contact me for further assistance.